S&P500 and Dow Jones: Trump Tariff Threats Trigger US Stock Selloff, Tech Stocks Plunge

• Technology and Consumer Discretionary sectors were hardest hit, each declining over 2%, while 10 of 11 S&P 500 sectors posted losses with only Energy gaining slightly at 0.15%
• The S&P 500 tested its critical 50-day moving average at 6831.02, with technical analysts warning that a break below this level could trigger accelerated selling toward 6754.13
• Markets exhibited textbook risk-off behavior with simultaneous selling of stocks, U.S. Treasuries, and the dollar, while hard assets like gold rallied amid Trump's escalating tariff threats against NATO allies including France and the U.K.

Market Summary: Trump Tariff Threats Trigger US Stock Selloff

Key Market Movements

US equities experienced sharp declines on January 20, 2026, with major indices posting significant losses:

• Dow Jones Industrial Average: Down 488.94 points (-0.99%) to 48,870.39
• S&P 500: Down 76.15 points (-1.04%) to 6,863.86
• Nasdaq Composite: Down 315.507 points (-1.34%) to 23,199.88

Catalyst

President Trump's renewed tariff threats triggered the selloff, specifically his demands to purchase Greenland from Denmark and warnings to impose tariffs on countries opposing the sale. Following Saturday's tariff threats against eight NATO members, Trump escalated rhetoric against France and the UK, citing national security concerns. European leaders rejected the measures as "unacceptable" and are considering countermeasures.

Sector Performance

Technology and Consumer Discretionary sectors led declines, both falling over 2% (-2.04% and -2.08% respectively). Ten of eleven S&P 500 sectors closed lower, with Energy the sole gainer at +0.15%.

Individual Stock Movers

Losers: NetApp (-7.23%), Hewlett-Packard Enterprises (-6.04%), 3M (-5.78%)

Gainers: SanDisk (+7.5%), Intel (+5.43%), Expand Energy (+4.56%)

Market Implications

A classic "risk-off" trade emerged with investors selling US stocks, Treasuries, and the dollar while seeking safe havens like gold and silver. The S&P 500 tested critical support at its 50-day moving average (6,831.02), with technical analysts warning that failure of this level could accelerate downside momentum toward 6,754.13.

Trump's upcoming speech at the World Economic Forum in Davos could provide further market direction.